Twitter To Appoint Former Google CFO As Chairperson After Investor Push

Twitter Inc. TWTR named Patrick Pichette, a former Google executive as the board's chairperson, bringing an outsider to lead its board for the first time ever.

What Happened

Pichette, who served as a chief financial officer at Alphabet Inc. GOOGL GOOG owned Google had been on the board as an independent director since the end of 2018, reported Reuters.

Omid Kordestani, the outgoing executive chairperson, will continue to serve as a director on the 11-member board, which has three new members.

Why It Matters

The appointment of Pichette comes three months after Elliott Management hedge fund had pressed for the ouster of Twitter CEO Jack Dorsey.

The fund also insisted on improving corporate governance and expected the company to strive for a higher share price, reported Reuters.

Pichette’s appointment is expected to lead to greater management scrutiny and a focus on financial matters at Twitter.

An understanding between Elliott and Twitter lets Dorsey continue on the board and gives board seats to the fund, as well as others.

Jesse Cohn, who undertook the campaign on behalf of Elliott, Egon Durban, co-CEO of Silver Lake, and Fei-Fei Lei, an artificial intelligence expert, were appointed board members as part of the deal.

Dorsey has taken on President Donald Trump, a prolific user of Twitter, by labeling the president’s tweets in need to be fact-checked.

Trump, in return, has vowed that he would not let Twitter stifle free speech. He went on to sign an executive order that diminishes legal immunities available to social media platforms.

Twitter Price Action

On Tuesday, Twitter shares closed 1.16% higher at $32.26.

Posted In: Donald TrumpElliott ManagementJack DorseyReutersNewsPoliticsManagementTechMediaGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.